utes and regulations and GAO's standards. (2) The audit must be completed not less frequently than once every two years, and be submitted to the Secretary within 9 months of the end of the audit period. Each audit must cover the institution's activities for the entire period since the preceding audit. (3) The institution must have an audit performed at least once very two years. (c) Submission and access. The institution shall submit audit reports to the institution's local regional office of the Department of Education's Audit Agency. It shall give the Audit Agency and the Secretary access to records or other documents necessary to the audit's review. (Authority: 20 U.S.C. 1070a) Sec. Subpart E-How Does a State Select Students Under This Program? 692.40 What are the requirements for student eligibility? 692.41 What standards may a State use to determine substantial financial need? AUTHORITY: 20 U.S.C 1070c-1070c-1070c-4, unless otherwise noted. SOURCE: 52 FR 45433, Nov. 27, 1987, unless otherwise noted. Subpart A-General § 692.1 What is the State Student Incentive Grant Program? The State Student Incentive Grant Program assists States in providing grants and work-study assistance to eligible students who attend institutions of higher education and have substantial financial need. The work-study assistance is provided through campusbased community service work learning study programs, hereinafter referred to as community service-learning job programs. (Authority: 20 U.S.C. 1070c-1070c-4) § 692.2 Who is eligible to participate in the State Student Incentive Grant Program? (a) State participation. A State that meets the requirements in §§ 692.20 and 692.21 is eligible to receive payments under this program. of (b) Student participation. A student must meet the requirements § 692.40 to be eligible to receive assistance from a State under this program. (Authority: 20 U.S.C. 1070c-1) § 692.3 What regulations apply to the State Student Incentive Grant Program? The following regulations apply to the State Student Incentive Grant Program: (a) The regulations in this Part 692. (b) The Education Department General Administrative Regulations (EDGAR) in 34 CFR Part 74 (Administration of Grants) except for Subpart G, Part 76 (State-Administered Programs), Part 77 (Definitions That Apply to Department Regulations), Part 78 (Education Appeal Board), and 34 CFR Part 79 (Intergovernmental Review of Department of Education Programs and Activities). (c) The regulations in 34 CFR Part 604 that implement section 1203 of the HEA (Federal-State Relationship Agreements). (d) The Student Assistance General Provisions in Subpart A of 34 CFR Part 668. (Authority: 20 U.S.C. 1070c) [52 FR 45433, Nov. 27, 1987, as amended at 55 FR 21716, May 25, 1990] § 692.4 What definitions apply to the State Student Incentive Grant Program? The following definitions apply to the regulations in this part: (a) Definitions in 34 CFR Part 668. The following terms used in this part are defined in 34 CFR Part 668: Academic year (§ 668.2). Campus-based programs (§ 668.2). Guaranteed Student Loan Program (§ 668.2). HEA (§ 668.2). Income Contingent Loan Program (§ 668.2). Pell Grant Program (§ 668.2). PLUS Program (§ 668.2). Public or private nonprofit institution of higher education (§ 668.3). Postsecondary vocational institution (§ 668.5). Secretary (§ 668.2). State (§ 668.2). (b) Other definitions that apply to this part. The following additional definitions apply to this part: Full-time student means a student carrying a full-time academic workload-other than by correspondenceas measured by both of the following: (1) Coursework or other required activities, as determined by the institution that the student attends or by the State. (2) The tuition and fees normally charged for full-time study by that institution. Nonprofit has the same meaning under this part as the same term defined in 34 CFR 77.1 of EDGAR. (Authority: 20 U.S.C. 1070c-1070c-4) Subpart B-What Is the Amount of Assistance and How May It Be Used? § 692.10 How does the Secretary allot funds to the States? (a)(1) The Secretary allots to each State participating in the SSIG program an amount which bears the same ratio to the Federal SSIG funds appropriated as the number of students in that State who are "deemed eligible" to participate in the State's SSIG program bears to the total number of students in all States who are “deemed eligible" to participate in the SSIG program, except that no State may receive less than it received in fiscal year 1979. (2) If the Federal SSIG funds appropriated for a fiscal year are not sufficient to allot to each State the amount of Federal SSIG funds it received in fiscal year 1979, the Secretary allots to each State an amount which bears the same ratio to the amount of Federal SSIG funds appropriated as the amount of Federal SSIG funds that State received in fiscal year 1979 bears to the amount of Federal SSIG funds all States received in fiscal year 1979. (b) For the purpose of paragraph (a)(1) of this section, a student is "deemed eligible" to participate in a State's SSIG program if the student is in attendance at an institution that is eligible to participate in the State's program. (Authority: 20 U.S.C. 1070c) § 692.11 For what purposes may a State use its payments under the program? A State may use the funds it receives under this part only to make grants to students and to pay wages or salaries to students in community servicelearning jobs. (Authority: 20 U.S.C. 1070c) Subpart C-How Does a State Apply To Participate in This Program? § 692.20 What must a State do to receive an allotment under this program? (a) To participate in the State Student Incentive Grant Program, a State shall enter into an agreement with the Secretary under section 1203 of the HEA (Federal-State Relationship Agreement). (b) For each fiscal year that it wishes to participate, a State shall submit an application that contains information that shows that its State Student Incentive Grant Program meets the requirements of § 692.21. (c)(1) Except as provided in paragraph (c)(2) of this section, the State shall submit its application through the State agency designated in its Federal-State Relationship Agreement to administer its State Student Incentive Grant Program as of July 1, 1985. (2) If the Governor of the State so designates, and notifies the Secretary through a modification to the State's Federal-State Relationship Agreement, the State may submit its application under paragraph (b) of this section through an agency that did not administer its State Student Incentive Grant Program as of July 1, 1985. (Approved by the Office of Management and Budget under control number 18400544) CROSS-REFERENCE: See 34 CFR Part 604, Federal-State Relationship Agreements. (Authority: 20 U.S.C. 1070c-2(a)) § 692.21 What requirements must be met by a State program? To receive a payment under this program for any fiscal year, a State must have a program that— (a) Is administered by a single State agency in accordance with the Federal-State Relationship Agreement under section 1203 of the HEA. (b) Provides assistance only to students who meet the eligibility requirements in § 602.40; (c) Provides that assistance under this program to a full-time student will not be more than $2,500 for each academic year; (d) Provides for the selection of students to receive assistance on the basis of substantial financial need determined annually by the State on the basis of standards that the State establishes and the Secretary approves. CROSS-REFERENCE: See § 692.41. (e) Provides that all public or private nonprofit institutions of higher education and all postsecondary vocational institutions in the State are eligible to participate unless that participation is in violation of (1) The constitution of the State; or (2) A State statute that was enacted before October 1, 1978; (f) Provides that, if a State allocates funds to an institution under a formula which is based in part on the financial need of less-than-full-time students enrolled in the institution, a reasonable portion of the institution's allocation must be awarded to those students; (g) Provides that (1) The State will pay an amount for grants and work-study jobs under this part for each fiscal year that is not less than the payment to the State under this part for that fiscal year; and (2) The amount that the State expends during a fiscal year for grants and work-study jobs under this program represents an additional amount for grants and work-study jobs for students attending institutions of higher education over the amount expended by the State for those activities during the fiscal year two years prior to the fiscal year in which the State first received funds under this program; (h) Provides for State expenditures under the State program of an amount that is not less than (1) The average annual aggregate expenditures for the preceding three fiscal years; or (2) The average annual expenditure per full-time equivalent student for those years; and (i) Provides for reports to the Secretary that are necessary to carry out the Secretary's functions under this part. (Approved by the Office of Management and Budget under control number 18400544) (Authority: 20 U.S.C. 1070c-2) Subpart D-How Does a State Administer Its Community ServiceLearning Job Program? § 692.30 How does a State administer its community service-learning job program? (a)(1) Each year, a State may use up to 20 percent of its allotment for a community service-learning job program that satisfies the conditions set forth in paragraph (b) of this section. (2) A student who receives assistance under this section must receive compensation for work and not a grant. (b)(1) The community service-learning job program must be administered by institutions of higher education in the State. (2) Each student employed under the program must be employed in work in the public interest by an institution itself or by a Federal, State, or local public agency or a private nonprofit organization under an arrangement between the institution and the agency or organization. (c) Each community service-learning job must (1) Provide community service as described in paragraph (d) of this section; (2) Provide participating students community service-learning opportunities related to their educational or vocational programs or goals; (3) Not result in the displacement of employed workers or impair existing contracts for services; (4) Be governed by conditions of employment that are considered appropriate and reasonable, based on such factors as type of work performed, geographical region, and proficiency of the employee; (5) Not involve the construction, operation, or maintenance of any part of a facility used or to be used for religious worship or sectarian instruction; and (6) Not pay any wage to a student that is less than the current Federal minimum wage as mandated by section 6(a) of the Fair Labor Standards Act of 1938. (d) For the purpose of paragraph (c)(1) of this section, “community service" means direct service, planning, or applied research that is (1) Identified by an institution of higher education through formal or informal consultation with local nonprofit, governmental, and community. based organizations; and (2) Designed to improve the quality of life for residents of the community served, particularly low-income residents, in such fields as health care, child care, education, literacy training, welfare, social services, public safety, crime prevention and control, transportation, recreation, housing and neighborhood improvement, rural development, and community improvement. (e) For the purpose of paragraph (d)(2) of this section, "low-income residents" means (1) Residents whose taxable family income for the year before the year in which they are scheduled to receive assistance under this part did not exceed 150 percent of the amount equal to the poverty level determined by using criteria of poverty established by the United States Census Bureau; or (2) Residents who are considered low-income residents by the State. (2) Residents who are considered low-income residents by the State. (Authority: 20 U.S.C. 1070c-2, 1070-4) Subpart E-How Does a State Select Students Under This Program? § 692.40 What are the requirements for student eligibility? To be eligible for assistance, a student must (a) Meet the relevant eligibility requirements contained in 34 CFR 668.7; and (b) Have substantial financial need as determined annually in accordance with the State's criteria approved by the Secretary. (Approved by the Office of Management and Budget under control number 18400544) (Authority: 20 U.S.C. 1070c-2, 1091) |